joint training on effective electoral assistance training on effective electoral assistance ......

Joint Training onEffective Electoral AssistanceEffective Electoral Assistance

UNDP Procurement: The Big PictureMaputo, 23-28 June 2008

Karen HongUNDP/PSO

Procurement Defined

Procurement is the overall process of acquiring goods,

civil works and services which includes all functions from

the identification of needs, selection and solicitation of

sources, preparation and award of contract, and all phases

of contract administration through the end of a services’

contract or the useful life of an asset.contract or the useful life of an asset.

UNDP Procurement Framework

••Focus on more integration between Program and Operations Focus on more integration between Program and Operations

••Decentralised procurementDecentralised procurement

•• Support via Support via -- Procurement Support Office in CopenhagenProcurement Support Office in Copenhagen

Principles of UNDP Procurement

o Best Value for Money

The following general principles must be given due

consideration while executing procurement on behalf

of UNDP:

o Best Value for Moneyo Fairness, Integrity and Transparencyo Effective International Competitiono In the interest of UNDP


Best Value for MoneyWhat is the actual cost?

PurchasePrice

Acquisition

Installation

Maintenance

Disposal


Tender Methodology Application Lead time

If Long Term Agreements (LTA) does not exist

RFQ – Request for Quotation

(Goods/Services)

< USD 100,000 1-3 weeks

ITB - Invitation to bid > USD 100,000 10-12 weeks

Effective International Competition:Types and implication on lead time

ITB - Invitation to bid

(Goods)

> USD 100,000 10-12 weeks

RFP – Request for proposal

(Services)

>USD 100,000 12-16 weeks

Where LTA exists

LTA – Long term agreements Where they exist 1 – 4 weeks

Write

Specifications

TOR and SOW

Prepare

Solicitation

Documents

Seek, Clarify

and Close

Choose a Procurement Method

Identify Needs

Procurement Chain

Evaluate Offers & potential Validation Test

and Close

OffersAward Contract

Manage the

Contract

Negotiate the Contract Evaluation

Contracts Review

Committee

Procurement Action Plan

Typical Procurement Action Plan with Timeline

2 weeks: EOI/Pre-qualification

WHAT?WHAT?Defines what will be purchased, how, when, estimated cost, timeline, the Defines what will be purchased, how, when, estimated cost, timeline, the levels of approval required, risk areas, etc.levels of approval required, risk areas, etc.Acts as a road map to the Buyer in specific and the project in generalActs as a road map to the Buyer in specific and the project in general

2 weeks: EOI/Pre-qualification3 weeks: International Tender Exercise 2 weeks: Technical Evaluation1 week: Financial evaluation1 week: Drafting of the CAP submission1 week: CAP review and preparation for the submission to ACP3 weeks: ACP review2 weeks: Negotiation and award of Purchase Order/Contract_________15 weeks3-4 weeks: Delivery into the country

Total 17 - 18 weeks

LEGAL

FRAMEWORK

PLANNING &

IMPLEMENTATION

VERIFICATION

OF RESULTS

POST ELECTION

THE

ELECTORAL

CONSTITUTION

LEGISLATION

ELECTORAL

BODIES

ELECTION CALENDAR

BUDGETING,

FUNDING &

FINANCING

RECRUITMENT &

PROCUREMENT

LOGISTICS & SECURITYTABULATION

OF RESULTS

COMPLAINTS &

APPEALS

OFFICIAL

RESULTS

LEGAL REFORM

AUDITS &

EVALUATIONS

INSTITUTIONAL

STRENGTHENING &

PROFESSIONAL

DEVELOPMENT

ARCHIVING &

RESEARCHVOTERS’ LISTS

UPDATECODES OF

CONDUCT

TRAINING &

EDUCATION

REGISTRATION &

NOMINATIONS

ELECTORAL

CAMPAIGN

VOTING

OPERATIONS &

ELECTION DAY

ELECTORAL

CYCLE OPERATIONAL

TRAINING FOR

ELECTION

OFFICIALS

CIVIC EDUCATION

PARTIES &

CANDIDATES

VOTER

REGISTRATION

OBSERVER

ACCREDITATION

CAMPAIGN

COORDINATIONPARTY

FINANCING

MEDIA

ACCESS

BREACHES &

PENALTIES

VOTING

VOTE

COUNTING

SPECIAL &

EXTERNAL

VOTING

VOTER

INFORMATION

CODES OF

CONDUCT

Constitution & legislation

Electoral System Electoral

Bodies

Staffing

Equipment

Office lease/maintenanceutilities

Warehousing

Verification of Results

Post-

Election

Legal Legal FrameworkFramework

Running Costs Running Costs of EMBof EMB

Tabulation & communication of official results

Complaints & Appeals

Audits & evaluations

Upgrades, updates, training (i.e. BRIDGE) sust. development

Reform

The Electoral

Cycle + its

relation to

consumables

IT equipment/ software/ website

Training

Security Costs

Uniforms

Travel

Conferences

Printing

Voting Operations

and Election Day

Voter Registration

Electoral Campaign

Training and Education

ToT, venues, transport, equipment

Training of civic & voter educators

VR equipm/materials/announcements

Party & Candidate services

Observers & accreditation

Party liaison/Media monitoring

Complaints mechanism

Polling station kits, Ballot boxes, voting screens, ink, lanterns, uniforms, polling station furniture

Embassy voting & out-of-country voting

relation to procurement

activities

Printing of manuals

Training of election officials

Materials/announcements (TV, radio, press)

Data processing, VR list & ID cards

Data Entry Centre, hardware, software

Ballot lottery, design, production, logistics

Polling Forms

Counting Centres

Call Centre/Website

Security

Procurement within an Electoral Cycle

Commonly purchased goods and services by UNDP-PSO

••Training and education: Training and education: Printing services (manuals, posters), training programme, logistics, training kits, venue, Printing services (manuals, posters), training programme, logistics, training kits, venue, hiring of expertshiring of experts

••Voter registration:Voter registration:Printing, purchase of office equipment, ICT, registration kits, logistics, hiring of expertsPrinting, purchase of office equipment, ICT, registration kits, logistics, hiring of experts

••Data Centre Data Centre Hardware, software, training, integration of services, venueHardware, software, training, integration of services, venueHardware, software, training, integration of services, venueHardware, software, training, integration of services, venue

••Electoral campaignElectoral campaignMedia monitoring, printing and venue set up for ballot lottery servicesMedia monitoring, printing and venue set up for ballot lottery services

••Elections dayElections daySecurity & nonSecurity & non--security printing, ballot boxes, polling day kits, voting screens, ink, security printing, ballot boxes, polling day kits, voting screens, ink, lanterns, uniforms, furniture, logisticslanterns, uniforms, furniture, logistics


Roles of Specification/Terms of Reference

PurposePurpose::ToTo provideprovide aa basisbasis forfor obtainingobtaining aa goodgood oror serviceservice toto satisfysatisfy aa particularparticular needneed atat ananeconomicaleconomical costcost

Criteria of good specification:••IdentifyIdentify minimumminimum requirementsrequirements (design(design –– ii..ee.. dimension,dimension, weightweight oror performanceperformance ––whatwhat itit cancan do)do)••Generic,Generic, unbrandedunbranded toto allowallow forfor competitioncompetition••Well balance Well balance -- Not restrictive but also sets limits Not restrictive but also sets limits ••Well balance Well balance -- Not restrictive but also sets limits Not restrictive but also sets limits ••Identify standards in order to test for compliancy and provide quality assurance Identify standards in order to test for compliancy and provide quality assurance (i.e. ISO)(i.e. ISO)

If the Specifications/Terms of Reference are adequate, 50% of the procurement process is already done!


Procurement Oversight

•Key purpose is to mitigate risks

•Provided for in UNDP through the Financial Rules and Regulations and Procurement Manual as part of Internal Control Framework – ‘Checks and Balances’ in action via strong segregation of duties

•Avoid a closed loop circuit – a process does not begin and end with one person or group

In practice?Done in many levels/stages of the procurement chainDone in many levels/stages of the procurement chain


IDENTIFY NEEDS

EOI - SOURCING

PROCUREMENTMETHOD &

SOLICITATION DOCUMENTS

RECEIPT & OPENING

OF OFFERSCONTRACTS

FRR

FRR

FRRGP

GP

Check and balance

Good Practices

Segregation of

Control

Procurement Oversight

GP

OF OFFERSEVALUATION

CONTRACTS REVIEW

COMMITTEE

CONTRACT MANAGEMENT &ADMINISTRATION

DELIVERY

PAYMENTGOODSRECEIPT

END USER MONITORING

FRR

INVOICE CERTIFICATION

AWARD & CONTRACTFINALISATION

FRR

GP

GP


Risks and Challenges - A Worm’s Eye View

UNDP Procurement

•The volume of UNDP procurement tripled to approximately $2.5 billion over a three-year period • It is no longer a back-office, but rather a mission-critical function

•Procurement having a much larger scope than generally acknowledged!

One Step Back

Procurement Trend (USD Mil)

UNDP Procurement

Formulation of the Support to the 2008-2011 Strategic Plan of the National Election Commission in Rwanda

2008 Total Budget: US$ 19 million equal to 34% of overall 2008-2011 budget

Procurement related activities: US$ 11.7 equal to 61 % of total 2008

Case no: 1

Procurement related activities: US$ 11.7 equal to 61 % of total 2008 expenditure

(here of 36% for procurement of electoral material and logistics, adding up with tendering for training, civic education, EMB core running costs such as comms services, stationary, maintenance, car rental etc.)

UNDP Procurement

Formulation of the Support to the Zambian Electoral Cycle 2008-2011

Total Budget: US$ 17 million

Currently allocated procurement activities: US$ 8 million equal to 47 % of total expenditure

Case no: 2

(these 47% covers only procurement of civic & voter registration material, IT equipment, and contracts for various services but excluding E-Day material and logistics, hiring of international and national experts, EMB core running costs etc.)

Cost of Registration and Elections

Different issues involved – like-to-like comparison among countries unlikely

When cost is discussed it could involved:

• The direct procurement cost• The diffuse cost – difficult to quantify, will not be budgeted for in the ProDoc

Other issues to be considered:Other issues to be considered:

• Integrity cost – related to voter & ballot security. Crucial in emerging and post conflict countries, linked to public trust

• Core cost - election-based activities i.e. voter registration, polling day, counting etc. incurred independent of the integrity cost

So how much does an election actually cost?

Comparative DataCost of Registration & Elections

Stable Democracies: $1-3Chile $1.2Costa Rica $1.8Brazil $2.3Botswana $2.7India $1.0

Transitional Democracies: $3-8Mexico $5.9El Salvador $4.1Paraguay $3.7Lesotho $6.9Uganda $3.7

Post Conflict Elections in Peace Keeping Environment $8-45

Angola 1992 $22.0

Cambodia 1993 $45.5

Mozambique 1994 $10.2

Afghanistan 2004 $20.0

Haiti 2005 $11.0

UNDP Procurement

Case Study – VR Costing

Voter Registration kits with ID and photo for 2500-3000 Voters – Cost estimation (in USD)

Option 1: Low-tech voter registration kit

Option 2: OMR Forms registration kit

Option 3: Digital registration kit

Total price per Kit US$21.20 Total price per

KitUS$1,166 Total price per

KitUS$4,015

Total price per

VoterUS$ 0.71-0.85 Total price per

VoterUS$ 0.39-0.47 Total price per

VoterUS$1.34-1.67

OMR

Machine

US$60,000

Hidden cost -

Logistics

10%-25% of

contract cost

10%-25% of

contract cost

10%-25% of

contract cost

Elections Procurement Elections Procurement –– Risks and ChallengesRisks and Challenges

Structural Arrangements in placeStructural Arrangements in place-- Independent EMB (is it?)Independent EMB (is it?)-- EMB with a EMB with a permanentpermanent structure or is it a shell?structure or is it a shell?-- Human Resources in EMB and UNDP (bodies or technical experts?)Human Resources in EMB and UNDP (bodies or technical experts?)-- Procurement Structure in EMB and UNDP (low/high capacity?)Procurement Structure in EMB and UNDP (low/high capacity?)

The most commonly experienced risks in electoral procurement are:The most commonly experienced risks in electoral procurement are:

Supply Market DistortionSupply Market Distortion- Political lobbying lead to prejudicial outcome of the tender process, market distortion- Some commodities are very simple but limited specialized suppliers - Affects cost, best technical solution, undermined the procurement entity

Insufficient Budget- Lead to sub-optimal goods and services being purchased- Several ad hoc procurement exercise as patch work solution


Inflexible deadlines- Often use by critical stakeholders as a tool to exert pressure on the procurement agent - Cause serious value for money predicaments i.e. need to airfreight, create artificial single source situation

Incomplete or Late Technical Specifications and ToR/Request Technical Specifications and ToR/Request for assistancefor assistance- Creates small margin for error, remedy action limited - Creates ambiguity, a situation suppliers can manipulate and difficult for - Creates ambiguity, a situation suppliers can manipulate and difficult for procurement agent to disqualify- Can result in the wrong supplier being selected

National ownership, capacity and infrastructureownership, capacity and infrastructure- EMB may not be ready, not created yet or simply lack capacity- Capacity is not just a one-off training- Does policy frameworks, systems & tools, procedures, understanding of budget exist?policy frameworks, systems & tools, procedures, understanding of budget exist?- Leadership? - Some developing countries are challenged logistically i.e. DRC, G-Bissau


Reputational risk- To EMB, UNDP and the donor community- The media and certain stakeholders may misrepresent the procurement actions

Unrealistic Expectations-- By stakeholders on the Procurement Rules & Regulations to deliver By stakeholders on the Procurement Rules & Regulations to deliver -- IllIll--informed of the market response time and structureinformed of the market response time and structure-- IllIll--informed of the market response time and structureinformed of the market response time and structure

Technological Innovations and Sustainability- Over-focus on traditional products i.e. poloroid cameras, silver nitrate ink- Innovation in the market place was not embraced

Cost of high-tech solutions and sustainability- Cost of VR without logistics factored in could go up to US$1.78 Cost of VR without logistics factored in could go up to US$1.78 -- Could createCould create unrealistic benchmark for some countries-- Creates negative perception if this is not repeated in subsequent electionsCreates negative perception if this is not repeated in subsequent elections-- Could be a oneCould be a one--time event with little synergies into a wider institutional plantime event with little synergies into a wider institutional plan

Elections Procurement Elections Procurement –– SolutionsSolutions

Seek advice early- First and foremost – be aware that emergency ambulance is available! - Make informed decision

Integrate procurement into project formulation- Include procurement opinion/s into project formulation- Create a role for Procurement Officer in the PMU

Procurement tools + InnovationProcurement tools + Innovation- Procurement plans to establish realistic timeline- Long Term Agreement (LTA) to create efficient procurement, expedite delivery,

control unrealistic price/build economy of scale- Explore innovative options i.e. better/new products, leasing options, total

outsource, synergize with other civil activities

Respect for code of conduct- Play fair – suppliers and EMB

Be realistic with the budget- Tools available via the EC Methodological Guide and CORE guideline

For further queries:

UNDP – PSO

Midtermolen 3,

2100, Copenhagen, Denmark

email: email:

[email protected]

[email protected]

[email protected]

Electoral Procurement Workshop:

28 – 30 October 2008

Copenhagen

THANK YOUTERIMA KASIHTERIMA KASIHOBRIGADAMERCITAK